china - peoples republic of planting seeds annual 2014 · 7/18/2014 · cotton my 2013/14 cotton...
TRANSCRIPT
THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY
USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT
POLICY
-
Date:
GAIN Report Number:
Post:
Report Categories:
Approved By:
Prepared By:
Report Highlights:
China’s hybrid corn and rice seed production and acreage declined in 2013 and are forecast to continue
to decline in 2014 as seed companies attempt to work through excess stocks. Despite decreased
acreage, hybrid corn and rice production are forecast to exceed demand again in 2014, leading to record
ending stocks. China’s seed imports are forecast to recover in MY 2013/14 following a 23 percent
decline in My 2012/13, as excess grass and sunflower stocks have been reduced.
Andrew Anderson-Sprecher and Zhang Lei
Scott Sindelar
Planting Seeds
Planting Seeds Annual 2014
Beijing
China - Peoples Republic of
CH14035
7/18/2014
Public Voluntary
Executive Summary:Hybrid corn and rice seed production and acreage declined in 2013 after several
years of expansion as seed companies tried to work through excess stocks. Ending stocks are set to
exceed annual hybrid corn seed consumption in 2013, and reach 60 percent of hybrid rice seed
consumption. Despite decreased acreage, hybrid corn and rice production are forecast to exceed demand
again in 2014, leading to record ending stocks. China’s seed imports declined 23 percent in
MY2012/13, primarily due to a large decline of grass and sunflower seed imports. Grass seed imports in
MY2013/14 are forecast to recover as the majority of stocks have been reduced. China’s seed exports
declined 34 percent in MY 2012/13 due to a large decline in rice seed exports.
General Information:
China is the second largest seed market in the world, annually using roughly 12.5 million tons of
planting seed. The Ministry of Agriculture (MOA) estimates the seed market in 2012 at RMB104
billion ($17 billion), of which 65 percent is hybrid corn, hybrid rice, vegetable, and fruit seeds. China is
self-sufficient in rice, corn, wheat, cotton, and soybean seeds, and produces 80 percent of the vegetable
and fruit seeds it uses. Farmers are relying less on saved seeds and are instead using government
subsidy programs to purchase higher quality commercial seeds.
China’s seed industry is highly fragmented and mostly dependent on public institutions for research and
development. Inconsistent seed quality and minimal farmer servicing by seed companies has limited
yield growth. Rising food demand and limited arable land in China have made this a pressing issue.
On January 19, 2014, China released a high-level policy document on agriculture that called for the
development of the modern seed industry (see GAIN CH14013). This is expected to speed up ongoing
efforts by the government to consolidate the seed industry and develop integrated companies with
independent research and development capabilities (see CH13008). The Ministry of Agriculture
announced that there were 5,200 seed companies as of May 2014, down from 8,700 companies in 2011.
The government hopes to further reduce this number in the future.
China is currently revising its seed law as part of its effort to develop a stronger domestic seed industry.
The draft law is expected to be published for public comment in fall 2014 and, if approved, enacted in
2015. The draft law will strengthen variety management and intellectual property protections for seeds.
It also reportedly will increase restrictions and oversight over international seed companies as well as
the transfer of germplasm internationally and within China.
Production:
Seed production in China is undergoing a cyclical contraction caused by overexpansion. Hybrid corn
and rice stocks reached a record one million tons and 140,000 tons respectively in 2013, more than 50
percent higher than the year before. Over the past several years seed companies have expanded
production far beyond demand in response to strong profits and in anticipation of higher future
production costs. Production also benefited from several years of better than average weather. Seed
producers are beginning to take steps to reduce market oversupply by reducing acreage in 2013.
However, seed production continued to exceed demand in 2013, resulting in record stocks in 2014 (see
table 1 below).
Table 1: China’s hybrid corn and hybrid seed stocks (1,000 Metric Tons)
2008 2009 2010 2011 2012 2013 2014*
Hybrid corn seed 610 450 430 400 650 1,000 1,300
Hybrid rice seed 82 47 47 47 75 140 155
Source: Ministry of Agriculture; 2014 based on Post estimate
Corn
2013 hybrid corn seed production is estimated at 1.41 million tons, down 10 percent year-on-year on
lower acreage. Acreage fell 14 percent to 250,000 hectares in 2013 as seed producers responded to
oversupply. Total supply in MY 2013/14 is estimated at 2.41 million tons, including one million tons in
carry-in stocks. Industry has voiced concern that for the first time total supply is more than double the
1.1 million tons estimated demand.
Rice
2013 hybrid rice seed production is estimated at 290,000 tons, down 16 percent on lower acreage.
Acreage dropped 19 percent to 104,000 Ha in response to oversupply. Combined with the 140,000 tons
of carry-in stocks, total supply is expected to reach 430,000 tons during MY2013/14. MY 2013/14
Hybrid rice seed consumption is estimated at 250,000 tons.
Wheat
2013 winter wheat seed production is estimated at four million tons, down 15 percent from last year due
to adverse weather in major producing regions. Acreage was stable at 800,000 Ha. Most wheat seeds
are conventional varieties grown in northern China. Total demand in 2013/14 is estimated at 3.1 million
tons. MOA estimated that only 56 percent of wheat seeds were bought commercially in 2012, with farm
saved seeds accounting for the rest.
Cotton
MY 2013/14 cotton seed production is estimated at 127,500 MT, down four percent from last year on
lower acreage and yields. Cotton seed acreage declined one percent in reaction to a continued decline in
overall cotton acreage. MY 2013/14 cotton seed demand is estimated at 118,000 MT. Approximately
70 percent of cotton acreage is planted with genetically modified Bt cotton.
Prices
Hybrid rice prices continued their sharp upward trajectory in 2013, reaching $4.00 a pound due to
higher production costs. Hybrid corn prices also increased (see figure 1 below). Seed suppliers see
demand as inelastic and have avoided competing on price despite high stock levels.
Figure 1: Domestic Hybrid Corn and Rice Seed Prices
Source: Ministry of Agriculture
Imports
China imported 40,736 MT of planting seeds in MY 2012/13 valued at $ 255 million. This represented
a 23 percent decrease in volume, primarily due to a large decline of grass and sunflower seed imports.
Vegetable and fruit, grass (rye grass, fescue, clover, and Kentucky grass), sugar beet, and sunflower
seeds were the top four import categories by value. The United States continues to be the largest seed
supplier to China, and has high market share in grass, sunflower, and fruit/melon seeds. The United
States’ total seed market share in MY 2012/13 was 60 percent by volume and 36 percent by value.
Grass seed imports to rebound
Post forecasts MY 2013/14 grass seed (rye, fescue, clover, and Kentucky) imports at 45,000 MT, an 80
percent increase over MY 2012/13, as imports are expected to rebound normal levels (see figure 2).
Local traders are optimistic about MY2013/14 imports as the majority of stocks have been digested in
MY2012/13 when imports were low. Demand for feed grass and landscape grass remains strong.
Please refer to CH12009 for more information on China’s policies supporting grassland development
and protection.
Grass seed imports fell 33 percent in MY 2012/13 to 25,087 MT on large domestic stocks and high
international prices. According to China Customs data, the average price of imported fescue grass seed
increased 40 percent between MY2011/12 and MY2012/13.
MOA and the Ministry of Finance announced a joint support program for alfalfa production in 2012 to
provide high quality feed for the dairy industry, increasing demand for alfalfa seed. The program
provides an annual subsidy of 525 million for alfalfa production in 10 provinces until 2015. As a result,
alfalfa seed imports increased over 330 percent over the past two years, reaching 1,741 MT in
MY2012/13. The provinces receiving subsidies are: Heilongjiang, Jilin, Liaoning, Inner Mongolia,
Hebei, Tianjin, Shaanxi, Gansu, Ningxia and Xinjiang.
Figure 2. China’s Grass Seed Imports (in metric tons)
Source: Global Trade Atlas; MY13/14 is an estimate
Sunflower seed imports to maintain low volume due to plant acreage shrink Sunflower seed imports are forecasted to increase 15 percent in MY 2013/14 to 1,750 MT after two
years of rapid decline (see figure 3). The small recovery is not expected to change the overall
downward trend for sunflower seed imports in China. The United States continues to be the largest
supplier of sunflower seeds to China, accounting for over 97 percent of China’s total imports in MY
2012/13.
Sunflower acreage declined to 888,500 ha in 2012 from 984,000 ha in 2010 as farmers shifted to other
crops with higher returns, such as corn in the northeast and tomatoes in Xinjiang. Inner Mongolia,
Xinjiang and Jilin account for over 70 percent of China’s total sunflower acreage. In addition, some
seed growers are now producing foreign sunflower varieties in China, reducing demand for imports. An
increasing number of variety owners are choosing to produce seeds in China to take advantage of lower
production costs despite continued concerns about intellectual property rights protection.
Figure 3. China’s Sunflower Seed Imports (in metric tons)
(Source: Global Trade Atlas)
Vegetable seed imports remain high on strong domestic demand
MY 2013/14 vegetable seed imports are forecast to increase 15 percent to 8,700 MT because of strong
demand. Farmers, faced with growing vegetable consumption and limited land, are looking for ways to
increase yields. This in turn is generating strong demand for high quality seeds, including foreign
varieties. Indonesia, Italy, Denmark and Thailand supplied two-thirds of China’s vegetable seed
imports in MY 2012/13.
Exports
China’s seed exports declined 34 percent to 28,085 MT in MY 2012/13 driven by a 45 percent decline
in rice seed exports. Rising production costs and currency appreciation have made rice seed exports less
competitive. Industry contacts report that China’s rice seed exports are facing strong competition from
expanded multinational breeding facilities in Northeast Asia and are hampered by the government’s
restrictive germplasm protection policies. Despite these challenges, rice seed exports are expected to
recover 12 percent in MY 2013/14 to 19,000 tons.
Policy:
Intellectual Property Rights
The seed industry is technology and research intensive, making effective IPR protection critical to the
success. Weak IPR protection has been a major barrier to the development of China’s seed industry.
Variety violation and counterfeit seeds are common problems for both imported and domestic seeds.
Industry reports that over 50 percent of seeds sold in China are counterfeit, and for some varieties the
percentage climbs to 80 percent.
The structure of China’s seed industry makes it difficult to protect IPR. While the number of seed
companies is declining, there are still over 5,200 registered companies as of May 2014. Most of these
companies have little or no research and development capacity, creating little incentive for them to
focus on protecting IPR. Most seed development in China still occurs in public research facilities. The
government is working to address these challenges by strengthening IPR legal protections, reducing the
number of seed companies, and promoting private sector seed development. Please refer to GAIN
CH14015 for more information on agricultural IPR in China.
Variety Registration
On December 27, 2013, MOA released the revised Administrative Measures for Major Crops Variety
Registration. The revisions added new requirements for applying for variety registration, including the
length and location of testing. DUS testing is now required in addition to regional and production
testing and the number of testing locations is increased. The new measure also establishes rules for
withdrawing varieties from the market that fail to perform as promised. See Annex I for an unofficial
translation of the measure.
The new measure established a “green channel” to streamline the cumbersome variety registration
process under two scenarios. First, integrated enterprises with registered capital over RMB100 million
will be allowed to conduct their own regional testing and production testing for self-owned varieties
when applying for national registration. Second, seed varieties that have received provincial approval
and have two or more years of testing data from a set number of locations do not need to repeat regional
and production testing when applying for national approval. Foreign companies are unlikely to benefit
from the first scenario as most do not have breeding centers in China due to IPR protection concerns.
On May 29, 2014, the National Crop Variety Registration Committee announced the Testing Guideline
for Rice and Corn National Variety Registration Green Channel (Trial Version). The guideline instructs
applicants to submit variety registration green channel testing plans by December 15. Applicants will
be notified by January 15 if their testing plan has been approved. The document provides detailed
requirements for variety testing. See Appendix II for an unofficial translation of the guideline.
Plant Variety Protection (PVP) Applications and Approvals
As of the end of 2013, China’s PVP Office had accepted 11,710 PVP applications and approved 4,018.
The approval process generally takes 3-5 years, but can take longer. Two thirds of the applications
were for rice and corn (see table 4 below). Domestic agricultural research institutes and universities
accounted for slightly over half of the applications (see table 5 below).
Foreign companies have begun to take a greater interest in submitting PVP applications in China in
recent years. The Netherlands is the largest foreign PVP applicant, having applied for 290 new plant
varieties in China (250 of which are for flowers). The United States is the second largest foreign
application with 220 PVP applications, 183 of which are for corn varieties.
Table 4. PVP Applications and Approvals
Plant Applications Approvals
2011 2012 2013 Grand Total Grand Total
Rice 386 418 360 3,448 1,323
Corn 326 399 419 3,819 1,549
Wheat 118 94 84 967 372
Cotton 48 39 60 428 125
Soybean 47 61 37 460 142
Other major crops 73 82 119 689 181
Vegetable 97 95 74 658 152
Flower 128 105 117 834 106
Fruit 28 63 47 353 68
Others (pasture and tea) 4 5 16 54 0
Total 1,255 1,316 1,333 11,710 4,018
(Source: MOA PVP Office)
Table 5. PVP Applicants
Applicant Applications Approvals
2011 2012 2013 Grand Total Grand Total
Chinese research institutes 497 485 494 5,151 2,113
Chinese enterprises 530 584 618 4,253 1,313
Chinese universities/colleges 98 116 65 882 325
Chinese individuals 68 73 52 663 175
Foreign enterprises 57 89 98 681 89
Foreign individuals 2 4 2 40 1
Foreign universities/colleges 2 2 1 22 2
Foreign research institutes 1 8 3 18 0
Total 1,255 1,361 1,333 11,710 4,018
(Source: MOA PVP Office)
Tariff-rate Quotas
China’s tariff-rate quotas (TRQs) and VAT free seed import policies are still in effect and have not
changed. Please refer to CH12009 for more information on these policies.
Biotechnology Trade and Production:
There has been no progress in the commercialization of genetically modified corn and rice varieties.
MOA granted biosafety certificates to two insect resistant rice varieties and a high phytase corn variety
in November 2009, but these biosafety certificates are set to expire on August 17, 2014 and may not be
renewed. Policy makers have cited public opposition as a reason for not commercializing genetically
modified grain varieties. Industry sources have also identified government concern over the ability of
domestic seed companies to compete with international seed companies in the area of biotechnology as
a reason for the delay. Please refer to CH13033 for more information on biotechnology policies in
China.
Production, Supply and Demand Data Statistics:
Table 1. China's Imports from the World in Volume & Value
MY(Jul-Jun) Volume (MT) Value (Thousand US$)
HS Code
Planting
Seeds MY10/11 MY11/12 MY12/13 MY10/11 MY11/12 MY12/13
Total 50,993 53,131 40,736 250,873 276,471 254,909
10019010 Wheat 0 0 0 0
10020010 Rye 0 0 0 0
10030010 Barley 0 0 0 0
10040010 Oats 0 0 0 0
100510 Corn 257 387 384 4,447 5,430 5,430
10061011
Rice,long
grain 0 0 0 0
10061019 Rice, other 0 0 0 0 4 4
10070010 Sorghum 0 0 0 3 0 0
10089010
Other
cereals 0 0 0 0
12010010
Soybean
seeds 0 0 0 3 0 0
12051010
Rape/Colza,
low erucic
acid 0 0 0 0
12060010 Sunflower 3,824 2,897 1,533 48,163 37,010 16,666
12072010 Cotton 2 0 0 6 0 0
12091000 Sugar beet 978 950 815 12,034 15,448 18,657
120921 Alfalfa 402 1,258 1,741 1,360 6,002 8,876
120922 Clover 1,595 2,024 1,798 5,082 7,810 7,475
120923 Fescue 12,538 16,805 6,957 12,186 23,413 13,606
120924 Kentucky 5,361 6,841 3,498 14,807 20,554 11,767
120925 Rye grass 13,481 11,700 12,835 12,269 14,196 17,976
120930 Herbaceous 48 83 9 7,753 13,065 14,529
12092990
Other
Forage 3 52 52 35 307 307
120999
Fruit, Melon
and Other 4,432 3,342 3,566 18,541 19,790 21,402
120991 Vegetable 8,072 6,792 7,548 114,184 113,442 118,214
Source: Global Trade Atlas
Table 2. China's Imports from the U.S. in Volume & Value
MY(Jul-Jun) Volume (MT) Value (Thousand US$)
HS Code
Planting
seeds MY10/11 MY11/12 MY12/13 MY10/11 MY11/12 MY12/13
Total 34,335 37,582 24,442 111,183 126,607 92,772
10019010 Wheat 0 0 0 0 0 0
10020010 Rye 0 0 0 0 0 0
10030010 Barley 0 0 0 0 0 0
10040010 Oats 0 0 0 0 0 0
100510 Corn 0 0 0 0 0 0
10061011
Rice, long
grain 0 0 0 0 0 0
10061019 Rice, other 0 0 0 0 0 0
10070010 Sorghum 0 0 0 0 0 0
10089010
Other
cereals 0 0 0 0 0 0
12010010 Soybean 0 0 0 0 0 0
12021010 Peanut 0 0 0 0 0 0
12051010
Rape/Colza,
low erucic
acid 0 0 0 0 0 0
12059010
Rape/Colza,
nes 0 0 0 0 0 0
12060010 Sunflower 3,463 2,667 1,496 43,746 32,690 15,921
12072010 Cotton 0 0 0 0 0 0
12091000
Other sugar
beet 0 0 0 0 0 0
120921 Alfalfa 109 280 666 424 1,389 3,641
120922 Clover 598 758 182 1,870 2,879 802
120923 Fescue 11,568 15,746 6,231 11,085 22,089 12,226
120924 Kentucky 5,208 6,685 2,998 14,499 20,246 10,655
120925 Rye grass 10,818 9,338 10,044 9,090 10,568 12,604
120930 Herbaceous 6 78 3 2,531 6,061 7,685
120999
Fruit, Melon
& Other 2,272 1,738 2,298 11,406 13,088 15,894
120991 Vegetable 292 292 524 16,532 17,597 1,3344
Table 3. China’s Major Seed Imports and Major Countries of Origins
Clover Imports Volume and Major Origins (in MT) 120922
Country MY10/11 MY11/12 MY12/13
Argentina 194 208 512
New Zealand 20 277 389
Australia 269 276 299
Denmark 375 297 215
Canada 139 210 202
United States 598 758 182
Total 1,595 2,024 1,798
Fescue Seeds Imports Volume and Major Origins (in MT) 120923
Country MY10/11 MY11/12 MY12/13
United States 11,568 15,746 6,231
Denmark 444 291 540
Canada 524 768 186
Others 2 0 0
Total 12,538 16,805 6,957
Kentucky Seeds Import Volume and Major Origins (in MT) 120924
Country MY10/11 MY11/12 MY12/13
United States 5208 6685 2,998
Denmark 128 91 384
Canada 25 65 116
Total 5,361 6,841 3,498
Rye Grass Imports Volume and Major Origins (in MT) 120925
Country MY10/11 MY11/12 MY12/13
United States 10,818 9,338 10,044
Canada 1658 2,125 1,771
Denmark 841 203 737
New Zealand 142 12 218
Australia 0 23 45
Germany 22 0 21
Total 13,481 11,700 12,835
Sunflower Planting Seed Imports Volume and Major Origins
(in MT) 12060010
Country MY10/11 MY11/12 MY12/13
United States 3,463 2,667 1,496
Argentina 111 15 19
France 13 10 10
Chile 169 204 4
Australia 62 1 3
Others 5 0 0
Total 3,824 2,897 1,533
Fruit, Melon and Other Import Volume and Major Origins
(in MT) 120999
Country MY10/11 MY11/12 MY12/13
United States 2272 1738 2298
Denmark 526 89 383
Canada 585 799 312
Argentina 425 374 175
Australia 265 101 159
Taiwan 189 165 91
Others 167 75 147
Total 3,921 4,432 3,342
Vegetable Import Volume and Major Origins (in MT) 120991
Country MY10/11 MY11/12 MY12/13
Indonesia 1603 1124 2506
Italy 1477 1732 1064
Denmark 749 614 791
Thailand 1514 1187 719
Vietnam 242 182 570
United States 292 292 524
Japan 461 398 454
Belgium 0 163 327
Australia 218 297 222
Others 1,516 803 3,71
Total 8072 6,792 7,548
Source: Global Trade Atlas
Table 4. China's Seed Exports to the World in Volume & Value
MY(Jul-Jun) Volume(MT) Value(Thousand US$)
HS Code
Planting
Seeds MY10/11 MY11/12 MY12/13 MY10/11 MY11/12 MY12/13
Total 33,124 42,835 28,085 186,827 276,838 246,655
10019010 Wheat 5 0 0 0 0 0
10020010 Rye 0 0 0 0 0 0
10030010 Barley 0 0 0 0 0 0
10040010 Oats 0 0 0 0 0 0
100510 Corn Seed 161 255 53 498 512 148
10061011
Rice Long
Grain 21,384 30,671 16,863 54,144 94,812 53,767
10061019 Rice Other 2,625 160 142 6,607 594 262
10070010 Sorghum 6 0 0 89 0 0
10089010
Other
Cereals 0 1 0 0 1 0
12010010 Soybeans 61 35 0 204 131 0
12051010
Rape/Colza,
low erucic
acid 0 9 6 0 27 13
12059010
Rape/Colza,
nes 0 292 107 1 482 169
12060010
Sunflower
Planting 297 1,399 1,184 1,154 6,440 4,955
12072010
Cotton
Planting 329 91 0 1,583 453 0
120921 Alfalfa 1,390 972 228 5,051 4,304 601
120922 Clover 0 0 0 1 0 1
120923 Fescue 0 6 8 3 3 13
120924 Kentucky 9 0 64 58 0 404
120925 Rye Grass 4 47 5 10 78 6
120930 Herbaceous 972 813 653 13,308 18,318 13,775
12091000 Sugar Beet 1 2 7 14 37 48
12092910
Other Sugar
Beet 11 8 13 41 51 69
12092990
Other
Forage 759 2,319 493 2,814 5,524 1,037
120991 Vegetable 3,600 4,668 7,548 78,856 124,685 164,626
120999
Fruit, Melon
and Other 1,510 1,087 889 22,391 20,386 6,761
Source: Global Trade Atlas
Table 5. China’s Major Seed Exports and Major Countries of Origins
Rice, Long Grain Exports Volume and Major Destinations
(in MT) 10061011
Country MY08/09 MY09/10 MY11/12
Vietnam 8590 11145 9425
Pakistan 5775 8744 3978
Philippines 1172 1649 1725
Bangladesh 3396 2825 1518
Indonesia 2413 6092 35
Others 39 216 182
Total 21384 30671 16863
Vegetable Seed Exports in Volume and Major Destinations
(in MT)120991
Country MY08/09 MY09/10 MY11/12
Spain 10 165 2546
Korea South 434 888 891
Netherlands 678 750 838
United States 536 719 716
Italy 173 296 448
Japan 401 406 444
Taiwan 196 174 267
France 144 176 172
Hong Kong 139 169 162
Thailand 139 122 135
Bangladesh 45 88 107
Vietnam 227 153 100
Others 475 562 544
Total 3600 4668 7370
Fruit/melon Seed Exports in Volume and Major Destinations
(in MT)120999
Country MY08/09 MY09/10 MY11/12
Korea South 733 379 423
Japan 306 354 314
United States 67 51 26
Others 401 306 127
Total 1510 1087 889
Source: Global Trade Atlas
Appendix I
Administrative Measures for Major Crops Variety Registration
Chapter I - General Provisions
Article 1. The Measure is formulated based on the "Seed Law of the People's Republic of China
(hereinafter referred to as the “Seed Law”) to scientifically, impartially, and timely approve major crop
varieties.
Article 2. The Measure applies to the major crop variety registrations in China.
Article 3. The term “major crops” used in the Measure refers to rice, wheat, corn, cotton, soybean,
rape, potato and other 1-2 crops determined by provincial agricultural administrative departments.
Chapter II - Variety Registration Committee
Article 4. Established by the Ministry of Agriculture, the National Variety Registration Committee is
responsible for national crop variety registrations. Established by provincial agricultural administrative
departments, the Provincial Variety Registration Committees are responsible for provincial crop variety
registrations.
Article 5. Variety Registration Committee consists of professionals specialized in research, teaching,
producing, marketing, management, and application, etc. The members should have senior professional
titles or positions at division director level and above, generally below 55 years of age, for a term of five
years.
Variety Registration Committee is supposed to have one Director and 2-5 Deputy Directors.
Article 6. Variety Registration Committee establishes an office, which is responsible for daily work of
the Variety Registration Committee. The office is supposed to have one Director and 1-2 Deputy
Directors.
Article 7. Special Committees by different crops shall be established under Variety Registration
Committee. The Special Committee consists of 11-23 members with one Director and 1-2 Deputy
Directors.
Article 8. Variety Registration Committee shall set up Director Committee, consisting of the Director
and Deputy Directors of Variety Registration Committee, Directors of each Special Committees and the
Director of the office.
Chapter III - Application and Acceptance
Article 9. The agents and individuals (hereinafter refers as the applicants), who apply for variety
registration, can apply directly to National Variety Registration Committee or Provincial Variety
Registration Committees.
Foreigners, foreign enterprises or other organizations with no habitual residence or place of business in
China that want to apply for Variety Registrations in China should entrust a seed research institute,
producer, or trader possessing legal person status as their agent.
Article 10. Rice, wheat, corn, cotton, soybean, rape and potato are subject to national or provincial
variety registration. The applicants may apply for national and/or provincial registration, or apply to
several provinces (autonomous regions and municipalities directly under the Central Government) for
variety registration.
The major crop varieties determined by the provincial agricultural administrative departments apply to
provincial approval.
Article 11. The varieties applying for registration should meet the following requirements:
(1) Artificially bred/discovered and improved;
(2) Distinct from existing varieties (registered varieties or varieties whose application have been
accepted by the peer Crop Variety Registration Committee);
(3) Stable genetic traits;
(4) Consistent morphological and biological characteristics;
(5) A name complying with “Rules on Naming Agricultural Plant Varieties”;
(6) A two-years and multi-locations variety comparison trials shall be completed in the same
type of ecological zones. For rice, wheat and corn varieties applying for national variety registration, it
requires no less than 20 testing sites per year for comparison trials; for cotton, soybean, rape, potato
varieties applying for national variety registrations, it requires no less than 10 testing sites per year for
comparison trials, or more than two provincial testing reports. For rice, wheat and corn varieties
applying for provincial variety registrations, it requires no less than 10 testing sites per year for
comparison trials; for cotton, soybean, rape, potato and the provincially-determined major crop varieties
applying for provincial variety registrations, it requires no less than 5 testing sites per year for
comparison trials.
All applications from the applicant would be rejected in three years if the applicant engages in any
deception, bribery or other improper behavior during the application process. Where a crime is
constituted, criminal liability will be investigated.
Article 12. Applicants applying for variety registration shall submit the following documents to the
office of Variety Registration Committee:
1) Application Form. The Application Form includes crop species and variety name (with a
written guarantee that the applied variety name is consistent with the name used for New Plant Variety
Right and Safety Assessment of Agricultural Genetically-Modified Organisms); applicant name,
address, post code, contact, phone number, fax, nationality; agents or individuals responsible for variety
breeding (hereinafter referred to as “breeders”);
2) Variety Breeding Report. The report includes the combination of parent lines and the parental
relationship of the hybrids, breeding method, characterization of generations; the trait characterization
of varieties (including the parent lines of hybrids), standard images, proposed testing area and key
points of cultivation; main defects of the variety and the problems that should be paid attention to;
3) Variety Comparison Trial Report. The report includes test purpose, test varieties, test design,
implementation agent, resistance identification, quality analysis, yield result, as well as the data of each
test site and summarized result;
4) Letter of Commitment for the Authenticity of Variety and Application Material;
5) Test Report of GMO Detection.
6) GM cotton variety shall also provide Agricultural Genetic Modification Biology Safety
Certificate.
Article 13. Within 60 days after receiving the application, the office of Variety Registration Committee
shall make the decision to accept the application or not, and inform the applicants.
For those applications compliant with Article 11 and 12 of this Measure, the applications should be
accepted and the applicants should be informed to provide test seeds within 30 days. The office shall
arrange variety testing for those who provide test seeds; while the application shall be deemed as
withdrawn for those who fail to provide test seeds in time.
For those applications not in compliance with Article 11 or 12 of this Measure, the applications should
be rejected. Within 60 days after receiving the notice, the applicants may present their opinions or do
amendment; while the application shall be deemed as withdraw for those who fail to reply in time. The
applications shall be rejected if they are still not compliant with related articles after amendment.
Article 14. The office of Variety Registration Committee should reserve the reference sample from the
test seeds provided by applicants, and submit to MOA-assigned institute for storage.
Chapter IV – Variety Trials
Article 15. Variety trials include:
1. regional testing;
2. production testing;
3. tests for distinctness, uniformity and stability (DUS) testing (hereafter refer to as DUS testing).
The varieties can be exempted from regional testing and production testing when applying national
approval if they passed provincial approval and got two years testing data at over 10 production testing
locations in the same type of ecological zones of neighboring province, Autonomous regions, and
municipality directly under the Central Government.
The specific measures shall be developed and released by Variety Registration Committee.
Article 16. Regional testing and production testing at national level shall be implemented by National
Agricultural Technology Extension and Service Center; regional test and production test at provincial
level shall be implemented by provincial seed management organization. DUS testing shall be
conducted by MOA New Plant Variety Test Center.
Article 17. Regional testing is supposed to indentify the variety agronomic traits such as yield ability,
yield stability, stress tolerance and quality, as well as DNA fingerprint testing and GMO detection.
The regional testing of each variety must be no less than two production cycles, with no less than 3 test
replicates; the test sites in the same ecological zone must be no less than 10 for national level and no
less than 5 sites for provincial level.
Article 18. Synchronization of DUS testing and regional testing follows related crop test guideline.
Article 19. The production testing should be implemented in the same ecological zone after the
regional test. The production test is supposed to further validate the yield ability, yield stability and
stress tolerance of each variety following the local production practice under the condition close to field
production.
For each variety, the production testing sites should be no less than the sites for the regional test. The
planting area for each test site should be no less than 300 m2, no more than 3000 m
2; and the test time
should be no less than one production cycle.
Article 20. The check variety for regional testing and production testing should be the representative
registered variety with same producing period in the same ecological zone. The check variety shall be
proposed by the testing implementation institution and approved by Special Committee of Variety
Registration Committee. The check variety shall be changed timely based on the agriculture
development requirements.
The check variety for provincial regional test and production test shall be reported by provincial Crop
Variety Registration Committee to national Crop Variety Registration Committee for the record.
Article 21. The unit undertaking regional test or production test should have independent legal
personality with the corresponding test sites, equipment, and technical personnel.
The technician for variety trials should have relevant professional college education or professional
titles of intermediate or above, with more than three years work experience in variety trials and
regularly receiving related technical training.
The testing institutions assigned by Variety Registration Committee shall be responsible for stress
resistance identification, quality analysis, DNA fingerprint test and GMO detection.
Article 22. Along with the office of Variety Registration Committee, the specific implementation
institution should regularly organize the investigation of variety trials to examine the trial quality,
evaluate the variety performance, and formulate investigation report.
Article 23. The specific implementation institution should hold a wrap-up meeting within 60 days after
each production cycle. According to the test summary and investigation result, the Special Committee
of Variety Registration Committee decides either to terminate the trial or to continue for registration
submission. The office of Variety Registration Committee shall inform applicants the final decision of
the variety application.
Article 24. The seed enterprises with integrated breeding, production and marketing business and
registered capital over RMB100 million may implement the regional testing and production testing of
own crop varieties when applying for national approval. The testing plan shall be reported to the Office
of National Crop Variety Registration Committee and confirmed by the Office 60 days prior to sowing.
Testing conditions and standards shall be no lower than national level regional testing and production
testing, and shall accept variety testing investigation regulated by Article 22 of this Measure. The
specific measures shall be developed by the National Crop Variety Registration Committee.
Chapter V – Registration and Announcement
Article 25. For the variety completing the procedure of DUS testing, regional testing and production
testing, the data of each test site and summary result should be submitted to the office of Variety
Registration Committee by the specific implementation institution of variety trial within 60 days.
For the varieties regulated by the Article 15 of this Measure applying for national approvals, breeders
shall submit papers to the Office of National Crop Variety Registration Committee, including Provincial
Approval Certificate, copy of Registration Announcement, breeder’s voluntarily production testing
summary report, and DUS testing report.
The office of Variety Registration Committee shall submit to Special Committee of Variety Registration
Committee within 30 days for preliminary examination. The Special Committee should complete the
preliminary examination within 60 days.
Article 26. During the preliminary examination, each Special Committee should convene a plenary
meeting. The meeting is considered as valid if more than 2/3 of the total members attend the meeting.
According to registration criterion, the variety preliminary examination applies with secret ballot. The
variety is considered as passed if approval votes achieve 1/2 and above of the total number of members.
Article 27. Implementation of a recusal system. The office of Variety Registration Committee decides
whether the director of Special Committee needs to be recused; a Special Committee decides the recusal
of other members.
Article 28. For the variety that passes the preliminary examination, the review comments of
preliminary examination as well as the data of each site and summary result shall be published by the
office of Variety Registration Committee on the official website for exposure. The public exposure
duration should be more than 60 days.
Article 29. After public exposure, the review comments of preliminary examination as well as
exposure result should be submitted by the office of Variety Registration Committee to the Director
Committee of Variety Registration Committee for examination. The Director Committee should
complete the examination within 30 days. The variety gets the approval if it passes the examination.
Article 30. For the variety with approval, the Variety Registration Committee shall designate an
identifier, issue the certificate, and the peer agricultural administrative department shall publish the
notice.
For the varieties with provincial approval, the provincial agricultural administrative departments should
submit the information such as variety name to MOA for public exposure before the public notice.
Article 31. The registration number consists of abbreviation of approval committee, abbreviation of
crop species, the year and series number, wherein the series number is three digits.
Article 32. The public notice includes: registration number, variety name, applicants, breeders, variety
history, morphological characteristic, growth stage, yield, quality, resistance to stress, key points of
cultivation techniques, suitable planting area and notes.
The provincial Variety Registration Committee should report to the National Crop Variety Registration
Committee for the record within 30 days of public notice.
The published variety name in the public notice should be the common name of the variety, which is not
allowed with unauthorized alterations during the process of production, operation and marketing.
Article 33. The registration certificate includes registration number, variety name, applicants, breeder,
variety history, registration comments, public notice number and certificate number.
Article 34. For the variety that fails to pass the registration, the office of Variety Registration
Committee shall inform the applicant within 30 days. The applicant may apply to the same Variety
Registration Committee for re-examination within 30 days of receipt of the notification date. Variety
Registration Committee should review the re-examination reason, previous registration document and
previous registration procedure during the following registration meeting. Variety Registration
Committee may arrange another production cycle of variety trial if necessary.
The Office of Variety Registration Committee shall inform the applicant of the review result within 30
days of re-examination in written.
Article 35. The variety registration standard of rice, wheat, corn, cotton, soybean, rape and potato shall
be established by National Crop Variety Registration Committee. The variety registration standard of
major crops determined by provincial agricultural administrative department shall be established by
provincial Crop Variety Registration Committee and reported to National Crop Variety Registration
Committee for the record.
The development of variety registration standard shall solicit public opinion.
Chapter VI – Variety Withdrawal
Article 36. The varieties that have passed registration should exit the market if the following situation
occurs during production:
(1) Serious flaws found in the application;
(2) Severe degradation of variety characters;
(3) Failure to provide variety standard sample as requested.
Article 37. For the variety that is proposed to withdraw, the office of Variety Registration Committee
shall make the proposal after soliciting opinion of the breeder or variety owner in writing. After
preliminary examination by Special Committee, the result shall be published on the official website of
the peer agricultural administrative department. The exposure duration should be more than 60 days.
After public exposure, the review comments and exposure results should be submitted by the office of
Variety Registration Committee to the Director Committee of Variety Registration Committee for
review. The Director Committee should finish the review within 30 days. After obtaining permission,
the variety shall be announced to exit the market by the peer agricultural administrative department.
Article 38. For the variety announced to withdraw the production should be stopped from the publish
date of announcement, and the operation and marketing should be stopped within one production cycle
from the publish date of announcement. Variety Registration Committee may decide to stop operation
and marketing from the publish date of announcement if necessary.
The provincial Crop Variety Registration Committee should report to the National Variety Registration
Committee for the record within 30 days after publishing the announcement.
Chapter VII – Supervision and Administration
Article 39. The personnel related to variety trial and administrative management shall undertake the
obligation of confidentiality of business secret obtained from the procedure of testing and registration,
and shall not provide the seeds applying for variety registration or seek illegal interests.
Article 40. The commitment institution practicing fraud should have its qualification conducting for
variety trials cancelled, and shall be investigated for the administrative responsibility of the units or
individuals who are responsible, or be held criminally responsible if it constitutes a crime.
Article 41. The personnel of test trial and registration administration who practice fraud, favoritism,
abuse of authority, or dereliction of duty shall be given administrative sanctions; or be held criminally
responsible if it constitutes a crime.
Chapter VIII – Supplementary Provisions
Article 42. The major crop variety that passes provincial registration may be introduced to the same
appropriate ecological zones of neighboring provinces, autonomous regions, municipalities directly
under the Central People's Government after getting the permission of respective agriculture and
forestry administrative departments. However, firstly, the introduction test should be carried out in
accordance with the “Agricultural Technology Promotion Act - People's Republic of China” to
demonstrate that their applicability.
Article 43. The work funding and variety test funding required by crop variety registration shall be
included in the special fiscal budget of the peer agricultural administrative department, and not collected
from applicants.
Article 44. The variety test of silkworm variety registration is with reference to the implementation of
this measure.
GM Crop Variety (except for GM cotton) Registration Measures shall be developed separately.
Article 45. This measure would be effective from February 1, 2014. At the same time the “the
Administrative Measure of Major Crop Variety Registration” issued by MOA Decree No. 44 on
February 26, 2001 and revised by MOA Decree No. 6 on November 8, 2007 should be abolished.
Appendix II
The Guideline on Green Channel Testing for National Variety Registration of Rice and Corn
(Trial Version)
Chapter I General Provisions
Article 1. This Guideline was formulated in accordance with Article 15 and Article 24 of Variety
Registration Measures of Main Crops (Decree No. 4, 2013 of the Ministry of Agriculture of the People's
Republic of China) (referred to as Variety Registration Measures hereinafter).
Article 2. This Guideline shall apply to regional testing and production testing conducted by applicants
themselves in accordance with regulations, when applicants apply for national variety registration of
hybrid rice and hybrid corn.
Article 3. Green channel testing for variety registration includes the following two cases:
Seed enterprises (hereinafter referred to as applicants) that both select and breed seeds and
produce seeds, whose registered capital is no less than RMB100 million and that can meet the
requirements stipulated by Article 16 in Regulations on Licensing of Seed Production and Sales (Decree
No. 3, 2011 of the Ministry of Agriculture of the People's Republic of China) are permitted to conduct
regional testing and production testing for their self-owned varieties by themselves.
For varieties that have gained the provincial registration and have testing data for two consecutive
years in over ten production testing sites of one ecological type in neighboring provinces, autonomous
regions and municipalities, they are exempt from regional testing and production testing when applying
for national variety registration.
Article 4. Undertaking units for regional testing and production testing shall be qualified as an
independent legal person and have suitable sites, equipment and technical personnel for these testing.
Article 5. Variety testing technicians shall have a technical college degree or above on a relevant major
or an intermediate professional title or above, have over three-year relevant work experience and have
relevant technical trainings regularly.
Chapter II Plan Confirmation
Article 6. Applicants form an implementation plan of the green channel testing for variety registration,
including testing purpose, testing variety (control variety included) and breeders, testing design, group
design and ecological layout of testing site, undertaking unit and responsible person, cultivation and
management method, observation record, resistance identification, quality analysis, GMO testing, DNA
fingerprint detection, DUS testing, testing summary, referring to the current implementation plan of
national variety registration of rice and corn. Applicants can adjust their testing plan to production
needs and shall present reasons for adjustment to the Office of National Crop Variety Registration
Committee.
Implementation plan form and research record form for the national variety testing for rice and
corn can be downloaded from the website of Variety Management, the sub-website of the National
Agricultural Technology Extension Service Center.
Article 7. The implementation plan of the green channel testing for variety registration shall be
submitted by applicants before December 15 every year to the Office of National Crop Variety
Registration Committee, then will go through primary review conducted by the National Agricultural
Technology Extension Service Center, and will be confirmed by experts who are assigned by the Office
of National Crop Variety Registration Committee. A written approval or disapproval notice will be sent
to applicants before the January 15th in the following year.
In cases of approval, applicants shall carry out testing in accordance with the implementation plan.
In cases of disapproval, applicants have the right to state their explanations to defend their plan or
to amend the implementation plan within 15 days after receiving the notice. If no explanation
statements or no amendments are made within this time period, the right will expire automatically.
Chapter III Variety Testing
Article 8. When regional testing and production testing are conducted by applicants themselves,
regional testing shall last no less than two production cycles and each group in regional testing shall
have no less than five varieties (including comparison variety, and the same hereafter) and no more than
15 varieties; after the completion of regional testing, production testing lasting no less than one
production cycle shall be conducted and each group shall have no more than 5 varieties.
Resistance identification is performed by the testing agency designated by the National Crop
Variety Registration Committee, and quality testing, DNA fingerprinting detection and GMO testing are
performed by the qualified testing agency.
Requirements on testing group, the ecological layout of testing site and their numbers comply
with those in the implementation plan of national variety testing for rice and corn, and adjustments will
be made by the National Crop Variety Registration Committee when necessary.
Article 9. Requirements on testing group, the ecological layout of testing site and their number for
hybrid rice varieties whose testing are conducted by applicants:
South China early indica group (Guangdong, Guangxi, Hainan and Fujian);
Group of early indica of early and middle maturity in the middle and lower reaches of Yangtze
River (Zhejiang, Anhui, Jiangxi, Hubei and Hunan);
Group of early indica of late maturity in the middle and lower reaches of Yangtze River (Zhejiang,
Fujian, Jiangxi, Hunan and Guangxi);
Group of middle indica of late maturity in the upper reaches of the Yangtze River (Chongqing,
Sichuan, Guizhou, Yunnan and Shaanxi);
Group of middle indica of late maturity in the middle and lower reaches of Yangtze River
(Jiangsu, Zhejiang, Anhui, Fujian, Jiangxi, Henan, Hubei and Hunan);
Group of late indica of late maturity in the middle and lower reaches of Yangtze River (Zhejiang,
Anhui, Jiangxi, Hubei and Hunan);
Group of late indica of middle and late maturity in the middle and lower reaches of Yangtze River
(Zhejiang, Fujian, Jiangxi, Hunan and Guangxi);
Huang-Huai japonica rice group (Jiangsu, Anhui, Shandong and Henan);
Early and middle japonica rice of middle maturity (Inner Mongolia, Liaoning, Jilin, Ningxia and
Xinjiang);
Early and middle japonica rice of early maturity (Inner Mongolia, Liaoning, Jilin, Heilongjiang
and Ningxia);
The number of regional testing sites in every production cycle shall be no less than twenty and
they shall be distributed in different county-level administrative regions in no less than four provinces;
the number of production testing sites shall be no less than the number of regional testing sites, and they
shall be distributed in different county-level administrative regions.
Article 10. Requirements on testing group, the ecological layout of testing site and their number for
hybrid corn varieties whose testing are conducted by applicants:
Very early spring corn group (Hebei, Jilin, Heilongjiang, Inner Mongolia and Ningxia);
Northeast early spring corn group (Jilin, Heilongjiang and Inner Mongolia);
Northeast middle spring corn group (Liaoning, Jilin, Heilongjiang and Inner Mongolia);
Northwest spring corn group (Inner Mongolia, Shaanxi, Gansu, Ningxia and Xinjiang);
The number of regional testing sites in every production cycle shall be no less than twenty and
they shall be distributed in different county-level administrative regions in no less than three provinces;
the number of production testing sites shall be no less than the number of regional testing sites, and they
shall be distributed in different county-level administrative regions.
Group of Spring Corn in the east of North China (Beijing, Tianjin, Hebei, Shanxi, Inner
Mongolia, Liaoning and Jilin);
Huang-Huai-Hai Summer Corn Group (Beijing, Tianjin, Shanxi, Hebei, Jiangsu, Anhui,
Shandong, Henan and Shaanxi);
Southwest spring corn group (Hubei, Hunan, Guangxi, Chongqing, Sichuan, Guizhou, Yunnan
and Shaanxi);
The number of regional testing sites in every production cycle shall be no less than forty and they
shall be distributed in different county-level administrative regions in no less than seven provinces; the
number of production testing sites shall be no less than the number of regional testing sites, and they
shall be distributed in different county-level administrative regions.
Article 11. For varieties that have gained the provincial registration, when their applicants conduct
production testing in areas of one ecological type in neighboring provinces, autonomous regions and
municipalities, their production testing shall last no less than two production cycles and there shall be no
less than five sites in every neighboring provinces and the total number of sites shall be no less than ten
in every production cycle, and they shall be distributed in different country-level administrative regions.
Article 12. The comparison variety in regional testing and production testing shall be consistent with
that used in national variety testing in the same ecological area in the same time period.
Article 13. In accordance with requirements of corresponding crop testing guidelines, DUS detection is
conducted in synchronization with variety testing.
DUS detection is carried out by the New Plant Variety Testing Center of the Ministry of
Agriculture. Variety standard samples are taken from those used in DUS detection and are saved by the
agency designated by Ministry of Agriculture.
Article 14. When regional testing and production testing are conducted by applicants, the testing shall
go through variety testing inspections stipulated by the Article 22 of Variety Registration Measures.
Chapter IV Submission for Registration
Article 15. Applicants shall submit testing site data, summary result, and summary report of self-owned
varieties whose regional testing, production testing and DUS detection are completed to the Office of
National Crop Variety Registration Committee within 60 days after finishing these testing.
For varieties that have gained the provincial registration and have testing data for two consecutive
years in over ten production testing sites of one ecological type in neighboring provinces, autonomous
regions and municipalities, applicants shall submit their provincial certificate, the copy of the approval
notice, summary report on production testing carried out by breeders, appraisal report on resistance in
neighboring provinces and DUS detection report to the Office of National Crop Variety Registration
Committee.
Applicants shall submit a commitment letter to ensure authenticity of relevant materials along
with the submission for registration.
Article 16. The National Crop Variety Registration Committee carries out variety registration in
accordance with requirements of Variety Registration Measures.
Chapter V Supervision and Administration
Article 17. Applicants shall be responsible for the authenticity of variety testing result and relevant
materials they submit. In case of falsification, their variety testing qualification will expire, registered
varieties will be revoked, and applicants and related persons will be investigated in accordance with
laws.
Article 18. Applicants shall be responsible for variety adaptability and resistance. However, they are
exempt from responsibilities in following cases:
(1) production losses are caused by force majeure;
(2) losses are caused by planters’ going beyond the risk scope on the seed label or instructions, or
losses are caused by not being planted in suitable areas.
Article 19. Registered varieties will be revoked if heavy production losses are caused by their serious
defects.
Article 20. The National Crop Variety Registration Committee and its staff are obliged to keep
confidential about business secrets of applicants which they obtain in the process of registration, and
shall not provide seeds used for variety registration to others or make illegal interests.
Article 21. Staff for variety registration shall be given administrative sanction in accordance with law,
when they commit falsification, irregularities, abuse of power, dereliction of duty and corruption; they
shall be given criminal sanction when they commit a crime.
Chapter VI Supplementary Provisions
Article 22. Self-owned variety is referred to varieties that are bred independently or cooperatively by
seed enterprises and whose intellectual property rights are owned by seed enterprises.
Article 23. For varieties that have entered the green channel of variety registration, they are excluded
from the application for the unified national variety testing.
Article 24. This Guideline takes into effect on May 26, 2014.
National Crop Variety Registration Committee
Released on May 29, 2014
Issued by National Crop Variety Registration Committee on May 29, 2014